Spokesman hits out at credit card criticism

An industry spokesperson has hit out at claims that providers of credit cards are “out of touch” with the needs of consumers.

A report from consumer watchdog Which? said that most credit card firms have upped their rates over the past 12 months, a move it stated was not in line with “reality”.

But Paul Rodford, head of policy at the UK Cards Association, argued that the current average interest charged by companies is “well beneath” that seen at its peak of 22.9 per cent in 1995.

And he noted that sixty per cent of customers pay off their monthly balances in full, meaning they are unaffected by interest rate or APR changes.

Mr Rodford explained that charges on credit cards sometimes have to be raised because of the “possibility of bad debt”, something that has become more relevant in the wake of the economic downturn.

He commented: “It’s a feature of our very competitive marketplace that card deals change all the time.”

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